|This course is concerned with the analysis of financial statements and the valuation of companies. Its primary objective is to advance your understanding of how financial reporting can be used in a variety of decisions (e.g., lending and investment decisions) and analyses (e.g., financial distress and bankruptcy prediction). The course provides both a framework for and the tools necessary to analyze financial statements. It is applied in nature and stresses the use of actual financial statements. Throughout the course, I draw heavily on real business examples and use cases to illustrate the application of the techniques and tools.
The first part of the course is designed to improve your ability to analyze financial statements and firms' accounting policies. It will also enhance your ability to use financial statements as part of an overall assessment of a firm's strategy and valuation. Topics include traditional ratio analysis techniques, accounting analysis (i.e., identifying earnings management and accounting quality issues), and financial risk analysis. The second part of the course focuses on equity valuation, e.g., the preparation of pro-forma financial statements, and the use of various valuation models.